Economy of Germany

The economy of Germany is a highly developed social market economy.^[28] It has the largest national economy in Europe, the third-largest by nominal GDP in the world, and the sixth-largest by PPP-adjusted GDP. Due to a volatile currency exchange rate, Germany's GDP as measured in dollars fluctuates sharply, but it is among the world's top 4 since 1960.^[29] In 2025, the country accounted for 23.7% of the Euro area economy according to the International Monetary Fund (IMF).^[30] Germany is a founding member of the European Union and the eurozone.^[31][32]

Germany is the third-largest exporter globally with $1.66 trillion worth of goods and services exported in 2024. In 2024, Germany recorded a trade surplus worth $255 billion, ranking 2nd worldwide. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Exports accounted for 50.3% of national output.^[33][34] The top 10 exports of Germany are vehicles, machinery, chemical goods, electronic products, electrical equipment, pharmaceuticals, transport equipment, basic metals, food products, and rubber and plastics.^[35] Germany is the largest manufacturing economy in Europe, contributing around one third of all manufacturing in Europe,^[36] which makes it more resilient to global economic crises.^[37] Germany conducts applied research with practical industrial value and sees itself as a bridge between the latest university insights and industry-specific product and process improvements. It generates a great deal of knowledge in its own laboratories.^[38] Among OECD members, Germany has a highly efficient and strong social security system, which comprises roughly 25% of GDP.^[5][39][4]

Germany is rich in timber, lignite, potash, and salt. Some minor sources of natural gas are being exploited in the state of Lower Saxony. Until German reunification, the German Democratic Republic mined for uranium in the Ore Mountains (see also: SAG/SDAG Wismut). Energy in Germany is sourced predominantly by fossil fuels (30%), with wind power in second place, then gas, solar, biomass (wood and biofuels), and hydro.^[40] Germany is the first major industrialised nation to commit to the renewable energy transition called Energiewende. Renewables produced 46% of electricity consumed in Germany (as of 2019).^[41] Germany has been called "the world's first major renewable energy economy".^[42][43] Germany has the world's second-largest gold reserve, with over 3,000 tonnes of gold.^[44] As of 2023, Germany spends around 3.1% of GDP, third among major economies, on research and development.^[45][46] It is also the world's second-largest high-technology exporter and ranks in the top 10 of countries by stock market capitalization.^[47][48]

More than 99 percent of all German companies belong to the German "Mittelstand",^[49] small and medium-sized enterprises, which are mostly family-owned. These companies represent 48% of the global market leaders in their segments, labelled hidden champions.^[50] Of the world's 500 largest publicly listed companies measured by revenue, the Fortune Global 500, 29 are headquartered in Germany, as are 26 of Europe's 100 largest. Germany is home to many financial centres and economically important cities, such as Berlin, Hamburg, Munich, Cologne, Frankfurt, and Stuttgart. Four German banks are among the biggest in the world. Germany is the world's top location for trade fairs;^[51] around two thirds of the world's leading trade fairs take place in Germany.^[52] Some of the largest international trade fairs and congresses are held in several German cities such as Hanover, Frankfurt, Cologne, Leipzig, and Düsseldorf.